LENSAR Inc. announced its filing of a Chapter 11 bankruptcy petition on Dec. 19 to reduce its debt, strengthen its balance sheet, and strengthen its platform for future growth, according to a press release from the company.
The Orlando-based company is a leader in femtosecond laser technology for refractive cataract surgery and features a laser system with three-dimensional reconstruction of the anterior segment.
PDL BioPharma Inc. (PDL), LENSAR’s senior secured lender, supports the filing and is expected to support a plan to reduce LENSAR’s debt, convert a portion of PDL’s outstanding debt into equity, and facilitate financial resources to LENSAR through the process, the press release said. LENSAR is also expected to continue normal operations throughout the restructuring and reorganization process.
With the financial support of PDL, LENSAR intends to continue to pay all employee wages, healthcare, and other benefits without interruption, according to the company.
“Given the growing aging population globally, with more than 22 million cataracts treated annually, I am very optimistic about the future of refractive cataract surgery and the opportunity to work with PDL,” said Nicholas Curtis, LENSAR chief executive officer, in a prepared statement. “We expect to continue changing the paradigm for how surgeons treat cataract patients and improve visual outcomes, seamlessly incorporating the preoperative diagnostics into the laser treatment to manage pre-existing and surgically induced astigmatism affecting nearly all cataract patients.”
The Chapter 11 case is expected to conclude in the second quarter of 2017. From there, according to the press release, PDL will continue to provide support to the “reorganized, de-leveraged LENSAR.”
“The hard work and dedication of our employees has enabled us to create a leading femtosecond laser technology platform for refractive cataract surgery and we are truly grateful for their commitment and support,” Curtis said in the prepared statement. “Together, we look forward to working cooperatively with our vendors, suppliers, and partners as we move quickly through this process.”
While there is commonly a negative connotation associated with bankruptcy, Curtis said this is a positive event for LENSAR.